Watts and kilowatts
Watts (W) measure how much power something draws at a moment. 1,000 watts is one kilowatt (kW).
Kilowatt-hours
A kilowatt-hour (kWh) is the energy used by something drawing 1 kW for one hour. A 2,000 W heater running for 30 minutes also uses 1 kWh.
Suppliers charge you for each kWh you use, which is why it's called the unit rate.
Quick conversion
kWh = watts ÷ 1,000 × hours used.